Flag this QuestionQuestion 11 ptsA debt to equity ratio of 1.0 means that half of the companys assets are financed by creditors. Flag this QuestionQuestion 21 ptsThe Sarbanes-Oxley Act requires a company to guarantee that its financial statements are 100 percent accurate. Flag this QuestionQuestion 31 ptsThe cost-benefit convention holds that the benefits to be gained from providing accounting information should be greater than the costs of providing it. Flag this QuestionQuestion 41 ptsThe investments category on the balance sheet normally includes investments that are intended to be held for a long period of time. Flag this QuestionQuestion 51 ptsInvestors and creditors use financial statements to evaluate a companys ability to pay dividends and interest. Flag this QuestionQuestion 61 ptsCurrent assets divided by current liabilities is known as the Flag this QuestionQuestion 71 ptsThe normal operating cycle helps define which of the following balance sheet sections? Flag this QuestionQuestion 81 ptsWhich of the following is a measure of liquidity? Flag this QuestionQuestion 91 ptsThe user can depend on the accuracy of financial information when which of the following qualitative characteristics has been followed? Flag this QuestionQuestion 101 ptsRelevance is comprised of all of the following except Flag this QuestionQuestion 111 pts___________ is related to both the nature of an item and its size. Flag this QuestionQuestion 121 ptsThe lower-of-cost-or-market method of accounting for inventories follows the convention of Flag this QuestionQuestion 131 ptsA practical decision to expense a $120 printer rather than record it as property, plant, and equipment and depreciate it probably is made on the basis of the convention of Flag this QuestionQuestion 141 ptsThe convention of consistency refers to consistent use of accounting principles Flag this QuestionQuestion 151 ptsThe profit margin equals Flag this QuestionQuestion 161 ptsSkip to question text.Use this balance sheet and income statement to answer the following question. Use ending balances whenever average balances are required for computing ratios. National TextileBalance SheetDecember 31, 20x5AssetsLiabilitiesCurrent assets$ 12,000 Current liabilities$ 8,000Investments2,000 Long-term liabilities 2,000Property, plant, and equipment16,000 Total liabilities$ 10,000Intangible assets 10,000 Stockholders Equity Common stock 30,000 Total liabilities and Total assets$40,000 stockholders equity$40,000 National TextileIncome StatementFor the Year Ended December 31, 20x5Net sales$48,000Cost of goods sold 16,000Gross margin$32,000Operating expenses 22,400Net income$ 9,600 The current ratio for National Textile is Flag this QuestionQuestion 171 ptsSkip to question text.Use this balance sheet and income statement to answer the following question. Use ending balances whenever average balances are required for computing ratios. National TextileBalance SheetDecember 31, 20x5AssetsLiabilitiesCurrent assets$ 12,000 Current liabilities$ 8,000Investments2,000 Long-term liabilities 2,000Property, plant, and equipment16,000 Total liabilities$ 10,000Intangible assets 10,000 Stockholders Equity Common stock 30,000 Total liabilities and Total assets$40,000 stockholders equity$40,000 National TextileIncome StatementFor the Year Ended December 31, 20x5Net sales$48,000Cost of goods sold 16,000Gross margin$32,000Operating expenses 22,400Net income$ 9,600 The return on assets for National Textile is Flag this QuestionQuestion 181 ptsSkip to question text.Use this information to answer the following question. Sunshine TravelBalance SheetDecember 31, 20x5AssetsCash $ 40,000 Short-term investments 20,000 Notes receivable (due in ten months) 15,000 Accounts receivable 10,000 Merchandise inventory 35,000 Land held for future use 40,000 Land 45,000 Building$50,000 Less accumulated depreciation 10,00040,000 Trademark 35,000 Total assets $280,000 LiabilitiesNotes payable (due in six months) $ 25,000 Accounts payable 10,000 Salaries payable 5,000 Mortgage payable (due in seven years) 45,000 Total liabilities $85,000 Stockholders EquityCommon Stock 100,000 Retained Earnings 95,000 Total Stockholders Equity 195,000Total liabilities and stockholders equity $280,000 The total dollar amount of assets to be classified as current assets is Flag this QuestionQuestion 191 ptsSkip to question text.Use this information to answer the following question. Coyle CompanyBalance SheetDecember 31, 20x5AssetsCash $ 70,000 Short-term investments 56,000 Accounts receivable 28,000 Notes receivable (due in six months) 42,000 Merchandise inventory 98,000 Special fund for purchasing a building 112,000 Land 140,000 Building$150,000 Less accumulated depreciation 28,000122,000 Trademark 92,000 Total assets $760,000 LiabilitiesNotes payable (due in one year) $ 70,000 Accounts payable 130,000 Salaries payable 14,000 Mortgage payable (due in seven years) 46,000 Total liabilities $260,000 Stockholders Equity Common stock 500,000Total liabilities and stockholders equity $760,000 The total amount of working capital is Flag this QuestionQuestion 201 ptsSkip to question text.Use this balance sheet and income statement for the first year of operations for Cane Construction to answer the following question. Use ending balances whenever average balances are required for computing ratios. Cane ConstructionBalance SheetDecember 31, 20x5AssetsLiabilitiesCurrent assets$ 14,000 Current liabilities$ 8,000Investments6,000 Long-term liabilities 2,000Property, plant, and equipment24,000 Total liabilities$ 10,000Intangible assets 16,000 Stockholders Equity Common stock 50,000 Total liabilities and Total assets$60,000 stockholders equity$60,000 Cane ConstructionIncome StatementFor the Year Ended December 31, 20x5Net sales$80,000Cost of goods sold 32,000Gross margin$48,000Operating expenses 26,400Net income$21,600 The current ratio for Cane Construction is
